High Voltage M&A
Energy sector consolidation looks set to continue, fueled by incoming Europeans, growing large locals and cash-strapped exiting small caps.
by Taina Rosa LatAm energy assets are expected to change
owners this year. On one hand, energy companies are seeking to
buy units they could use to become more competitive. On the
other, those that have run into trouble or need liquidity are
expected to divest. Activity is seen taking place across a
myriad of sectors, from oil and gas utilities to biofuels and
renewables. We are cautiously optimistic on M&A in
LatAms energy sector, says Greg Tan, partner at
Shearman & Sterling. He explains that well established
LatAm companies should acquire assets from international
sponsors that do not consider LatAm to be core. He adds that
locals will look overseas and at other countries in the region
to grow. Tan does not see strategics buying other companies as
a whole, but instead picking up valuable assets or company
divisions. They will cherry pick, says the
lawyer. Javier Garrido, co-head...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.